Ch 14-3

Ch 14-3
Hoover’s response to the depression
Hoover’s philosophy
• When the stock market crashed, Hoover tried to
caution the nation by telling them the nation was on
sound footing.
• Hoover’s advisor Andrew Mellon- advised Hoover
not to do anything and let the economy fix itself. “let
the system purge itself of the rottenness” Mellon
Hoover’s philosophy
• Hoover disagreed with Mellon and his approach to no
action.
• He believed the role of government was to foster
cooperation between competing groups and interests.
(business and consumers, banks)
• Rugged individualism- Hoover’s belief that people
should succeed through their own efforts.
Discussion
Was Hoover correct?
Should government have been more involved?
Steps taken by Hoover
• Hoover called for a meeting of key business leaders,
banks and labor union leaders.
• He urged organizations to work together to not
increase the problem.
• Hoover created an organization to help private
charities in assisting those in need
The election of 1930
• Was a midterm election ( a report card for the
president in office)
• American voters reacted strongly against
Hoover by giving control of the house of
representatives and a decrease in senate
seats.
Hoover’s changing approach
• Hoover realized that he was in danger of not
being reelected given the current crisis so he
became more aggressive in his approach.
• He began projects such as the Boulder Dam
construction, the Federal Farm Board, the
National Credit Corporation, the federal Home
Loan Bank Act and the Reconstruction Finance
corporation.
The Boulder Dam
• A dam built on the Colorado River dividing
Arizona and Nevada.
• It created jobs for hundreds as well as creating
a public works project.
The Federal Home Loan Bank Act
• A plan to lower mortgage rates for
homeowners.
• This plan also allowed farmers to refinance
their farms and avoid foreclosure.
Reconstruction Finance Corporation
Act
• Hoover’s most ambitious act that authorized
emergency funding to banks.
• Life insurance companies, railroads and other
businesses also received government aid.
• In total over 2 Billion dollars went out to
businesses with the intent of promoting
expansion.
Sound famiilar??????
Hoover’s downfall
-Hoover’s critics claimed he was too slow in
responding to the Depression.
-The Bonus Army- In 1932, Congressmen Wright
Pattman advocated that WWI veterans receive
the $500.00 bonus they were promised.
-The veterans gathered in Washington while
congress debated the issue it failed and 2,000
of the veterans refused to leave the city.
(tents)
The Bonus Army
• When the veterans refused to leave, Hoover
summoned Douglas Macarthur to to remove
them.
• Violence broke out and the nation was
horrified that veterans would be treated so
poorly.
“I’ll hardly have any trouble getting elected
now” Franklin D. Roosevelt
The unpopular president
The election of 1932